Malaysia Admits Palm Oil in Indonesia is More Economical

Malaysia Admits Palm Oil in Indonesia is More Economical

Palmoilmagazine, Afrinaldi Zulhen, Sawitfest 2021

Palmoilmagazine, KUALA LUMPUR – It is admitted or not, the deletion of palm oil export levy by the Government of Indonesia raised worry to the second biggest palm oil producer in the world, Malaysia.

Ministry of Commodity and Industry, Malaysia, Datuk Zuraida Kamaruddin convinced that the market fluctuation, if it happens, would be temporary only.

She also mentioned, until now the world still needs palm oil but it would be more expensive than it from Indonesia because Indonesia gets the supports by the available labors and good access. These mean the production costs are more economic. “This situation, however, would be temporary. I am not too worry about that,” Datuk Zuraida said, as quoted from Bernama.

After delivering announcement export ban that lasted for three weeks, the Government of Indonesia decided to eliminate export levy which started from 15 July to 31 August 2022 for crude palm oil (CPO) and its derivatives.

Datuk Zuraida mentioned, the ministry is optimist that China would escalate its palm oil imports.

Her Vice Minister, Datuk Seri Wee Jeck Seng also said, the ministry would keep monitoring palm oil development. Datuk Seri Wee continued, it would impact to Malaysia as one biggest palm oil producer. “We would notice it seriously because it has something to do with palm oil exports from Malaysia,” Datuk Seri said. (T2)

 

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